Examlex
What is the name of the following compound?
Effective-Interest Method
A technique used in accounting to amortize the discount or premium on bonds payable over the life of the bonds more accurately than the straight-line method.
Bonds
Bonds are fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.
Amortization
The gradual reduction of a debt or the spreading out of capital expenses for intangible assets over a specific period of time.
Accounting Period
The time frame in which financial transactions are recorded and reported, typically a fiscal year or quarter.
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